A resolution requesting Nashville Gas Company to study the patterns of deposit amounts used to guarantee payment of bills for services by zip code, and to report its findings to the Metropolitan Council.

WHEREAS, Nashville Gas Company has a franchise to sell and transport natural gas within the Metropolitan Nashville area; and

WHEREAS, the Tennessee Regulatory Authority (TRA) allows utilities to require a deposit from prospective customers to guarantee payment of bills for services, provided that such deposit amount does not exceed the maximum estimated charge for service for two consecutive monthly billing periods; and

WHEREAS, the TRA further requires utilities charging such deposits to keep records showing the name and address of each depositor and the amount of the deposit; and

WHEREAS, Nashville Gas Company, in accordance with TRA regulations, requires deposits for certain customers based upon their credit history, which is refundable to the customer after payments are made on time for a period of one year; and

WHEREAS, certain customers have expressed concern that the amount of the deposit charged by Nashville Gas Company seems to vary depending on the area of town in which the residence is located, with lower income areas paying higher deposit amounts; and

WHEREAS, it is fitting and proper that Nashville Gas Company examine the patterns of deposit charges by zip code, and submit a report to the Council as to the findings of the study.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan County Council hereby goes on record as requesting Nashville Gas Company to study the patterns of deposit amounts used to guarantee payment of bills for services by zip code, and to report its findings to the Metropolitan Council.

Section 2. The Metropolitan Clerk is directed to send a certified copy of this Resolution to John L. Clark, Vice President - Tennessee Operations of Nashville Gas.

Section 3. That Nashville Gas Company is further requested to respond to the Council as to the feasibility of and/or actions taken in compliance with the request stated in Section 1 hereof within sixty (60) days from the date of adoption of this Resolution.

Section 4. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Brenda Gilmore